Assume I have a short position in Nifty Call 2-strikes ITM contract. When is a margin call likely to be. When the Nifty falls to my BEP or when the Nifty falls to the strike. Assume the trimeframe is intraday and between the snapshots.
If you sold 25500 and 25700 calls while Nifty is at 26000, you only get a margin call when Nifty goes up, because rising prices make your short calls lose money. If Nifty falls toward 25700 or 25500, you’re safe because falling prices reduce the call value and help you.
So, margin call only when Nifty rises, never when it falls.
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